So, you run a business, huh? You probably provide some sort of product or service, right? Okay. So what? Who cares? There are a lot of products and services out there to choose from; why should I give a damn about what’s your brand?
Branding and marketing have
dramatically changed, but marketers are still ill-equipped and reluctant to
incorporate the changes. While creativity, branding differentiation, and
advertising used to rule the field, the rapid growth of companies like Amazon
have made value, service, quality, and culture more important. Now, more than
ever, it’s obvious that details, the execution of logistics, and operations are
integral marketing opportunities.
Consider these new key
perspectives:
Branding is not what you tell
them. Branding is what they think of you.
Your customers determine the
value of your products—not you!
We all know the adage:
Features tell, benefits sell. So, if this is true, why do so many
entrepreneurs still focus on the features of their product or service rather
than the benefits? Your prospective customers don’t care what your product or
service does; they only care about
what it does for them!
No one cares about a cool logo or a fun design. No one cares about creative
packaging. Consumers care about being satisfied. No one cares about your brand
unless they have a good experience.
Therefore, “branding” is actually more operational. So, how do we
shift our mindset from the old “traditional” way of branding and refocus on execution?
Make A Good First Impression
That first experience leaves a lasting impact. Is your store clean? Were the employees friendly? Did you have what the customer needed in stock? Is your website easy to navigate? Details matter. That’s why people hire designers to build websites and decorators to create ambiance. If a consumer’s experience wasn’t memorable in a positive way, you may have lost them. If their experience was bad, you’ve definitely lost them. What’s your brand is how they walk away feeling because that’s what they will remember.
Have a Strong Digital
Presence
Nowadays, everything is digital. It doesn’t matter if your
business is virtual or brick and mortar, you need to have an online presence.
I’ve seen people intentionally avoid a particular store or restaurant because
their website looked out of date or they had bad reviews on Yelp.
Things to consider: Is your website easy to navigate? Is
your store easy to find on Google Maps? Does it even come up in a Google
search? If a potential customer can’t find your store on the first try, chances
are they’re giving up and going to whichever store they could find easily in
their Google search.
Digital Branding needs to be comprehensive. You should have
a website, social media accounts (Instagram, Facebook, Twitter), and positive
reviews on sites like Yelp.
Do Not Neglect Operations and Execution
Adequate staffing, prioritizing services, and having enough supplies
to meet customer needs without incurring excess expense is critical. Pizza
parlors need to plan ahead for Super Bowl half-time deliveries, right? This
might not be your particular problem, but every business has its own version of
the “half-time rush.” If a first-time customer tries to utilize your service
and is disappointed, you’ve probably lost them.
Provide Service with
Integrity
Obviously, the goal is to always provide quality service the
first time, but we all make mistakes. If you do mess up, own up to it and try
to make it right. Many cafes offer free drink coupons when an order isn’t made
correctly. Acknowledging the error and attempting to make it right can
sometimes prevent a lost customer.
Brand Does Not Determine Price
Traditional pricing models no longer apply in today’s world
of business. Entrepreneurs who recognize this will be better able to price
their goods and services appropriately. In the past, it was thought that a
well-known, desirable brand meant you could charge whatever you wanted and
people would pay. Now, search engines make it incredibly easy to compare prices
and analytics are showing that, in reality, a low price is more important than
a brand name. In fact, there are tons of people who may want the prestige of a
designer bag, but are just as happy buying a knockoff.
Effective pricing strategies vary widely depending upon a
number of factors. Consider alternative pricing tactics as well as the entire
pricing package. It’s also imperative to remember that pricing is dynamic. Just
look at Amazon and airline companies: you can search the same product or flight
two days in a row and the price may shift. Demand determines price. Some
companies even brand themselves based solely on things like “the lowest price
option.”
Offer Convenience
In this day and age, if you’re not providing some sort of
ease of use or accessibility, you’re dead in the water. Try to offer some sort
of convenience, such as easy payment plan options, delivery, or 24-hour
customer service. Making your consumer’s experience efficient and convenient makes
your brand “user-friendly.” And who doesn’t want to be thought of in that way?
Company Culture
This is one of the most
important components of branding. Creating and maintaining a positive company
culture is a critical component in achieving excellence and establishing a
great brand. People remember experiences. They may not remember what they were
buying, but they’ll remember the employee who was rude to them. Please and
thank you always go a long way.
Your Brand is an Experience
Know your strengths. What makes you interesting and
different from your competitors? This doesn’t necessarily mean “better.” Two
different soaps can clean equally well and cost the same amount of money, but
if one comes in fun animal shapes… that stands out. It’s different. It’s
memorable.
There are people who shop at Saks Fifth Avenue, but also frequent
Costco. These consumers aren’t worried about price; they’re looking for an
experience—and they will receive a very different one at each location, but
both will be satisfactory and in alignment with their desires. People enjoy
shopping on Amazon because they like the experience of purchasing items from
home, in their sweats. Successful brands have clear, distinct experiences.
So, what makes your brand
unique? What experience are you providing? And why should anyone give a sh**
about what you’re offering? We’d love to hear your feedback in the comments
below!
A customized approach that caters to each of his clients’ specific needs is what sets Dr. Bert Shlensky apart. With a PhD from the Sloan School of Management at M.I.T., he focuses on implementing individualized strategies that have helped countless businesses increase sales and profit. He knows what works and has the experience and expertise to help you take the steps necessary to achieve your business goals.
Is risk taking scary? If you’re only thinking about the possible negative outcomes, yes. But, it can be exciting if you take more risks if you focus on the potential positives results.
Many risk takers
enjoy gambling because the the idea of
winning something is more exciting than losing… For others, the idea of
losing money is more unpleasant than the potential of gaining—and that makes
the experience unenjoyable for them.
Nonetheless, in business, it’s important (and frequently imperative) to take risks in order to expand, grow, and adapt. So, how do we take more risks responsibly?
Evaluate
The Risk
What and how much
is really at stake? If a lottery ticket costs $20 and the two potential
outcomes are to lose $20 or win $2 million, is that risk worth it? For some,
yes. But, not every risk is right for everyone.
What exactly is on
the line and how much can you afford to lose? Weigh the pros and cons. For
example, buying lottery tickets, gambling, and staying at a cheap hotel are all
things that have a low probability of “winning.” However, they are affordable and
the rewards are often high.
In
contrast, using all of your funds on risky investments, not buying insurance,
or driving somewhere without directions are all risks that have the potential
for significant loss and marginal benefits. This leads us to the next point…
Understand
The Odds
Do
you really, truly, and completely understand all the aspects of the risk? The probability
of reward, the amount of the reward, and the value of the reward? Do you know
what you’re going up against and what it would take to recover the potential
loss?
Assess The Worth
If we consider skydiving a
risk… the cost is fairly low and the probability of surviving is very high.
However, the fact that (despite good odds) there is even the slightest chance
of death makes it too much of a risk for many people. Truly understanding all the
aspects of any risk is key to deciding whether it’s worth it to you.
Know
Your Goal and Set Limits
For
me, playing cards is problematic because, if the stakes are low, I play more
daringly and end up losing quickly. If the stakes are high, I worry too much
about losing and don’t bet.
If
my goal is to have fun, I’ve learned that the best strategy is to set a
monetary limit so I can enjoy myself without worrying about excessive loss.
Different approaches will work for different goals. For example, in craps there
are some back bets that are at even odds. If my goal is to stay at the table as
long as possible to watch the action, I won’t take those bets because I’ll lose
my money faster and reach my limit sooner. For someone who is solely concerned
with winning quickly, they might take those bets.
Consider
Normal Distribution
Normal
distributions have many convenient properties, such as the concentrated curve in
the center, which decreases equally on either side. The highest probabilities
are around the mean (center or average) and the lowest at the edges of any
distribution.
Some
examples of its application are:
The
probability of heads or tails in a coin toss is 50% over the long run, but can
be very skewed one way or the other when considering just a few flips.
The
probability of rolling a 7 with two dice is about 16%. That is the same as
rolling a total of 2, 3, 11, or 12.
The
biggest issue here is that we sometimes assume a normal distribution when the
data doesn’t match. Changes in technology and/or deviant data points frequently
challenge our assumptions and estimates.
I
argue that normal distributions frequently underestimate outliers (i.e. exceptional
people like Steve Jobs, the impact of political events, technology, or just unusual
results). It’s counterproductive to always assume normal distribution is at
play when there are other important factors to consider, such as innovation,
unexpected data, and emotion. That 1% at the end of the distribution chart with
an extremely high value is what frequently accounts for exceptional behavior—
it’s where we find the individuals who ignore the odds and take a big risk.
Tips
to minimize loss:
Have a backup
plan.
Research
everything: cost, odds, competition, value, risk, and alternative strategies.
Know your
strengths and play to them.
Test and analyze
results so you can adjust accordingly.
Adapt and be flexible. Most efforts won’t succeed on the first
try, but practice integrating the positive components from each trial with some
different approaches.
Incorporate rather than ignore change, history, trends, and special
events. For example, the impact of E-commerce, analytics, and cell phones are
just starting to be understood and the potential may be much greater than
estimated.
If risk still
seems daunting to you, try to look at it this way: When playing a game like
Black Jack (or while running a business), there’s a strategy and you constantly
have to assess the cards you’ve been dealt in order to get the most out of the
money you’ve invested. Owning a business in and of itself is a risk. It’s just
a matter of deciding how much and what kinds of additional risks you want to
take to propel your business to the next level.
Sure, you can argue that riding the middle lane is safe and risk-free, but it’s naïve to think anything is “secure.” Life is more like Roulette: just when you think you see a pattern, chaos breaks loose. You could never intentionally take more risks and still suffer loss in the form of an unexpected economic slump, a natural disaster, or theft. At least with a planned risk, there are controlled aspects that take the unknown odds into consideration: a combination that weighs risk/reward and encourages growth.
Are
you a risk taker? Does risk excite or scare you? How has risk helped or
hindered your business? Share your stories in the comments!
Dr. Bert Shlensky, president of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies for businesses of all kinds. This combination has been the key to client success. His book, “Passion and Reality for Small Business Success,” is available at www.startupconnection.net.
How
do you view the world? Have you ever stepped back and asked yourself if your
outlook is correct? You might be wondering, “How can you measure that?” Well,
you can’t because we all have a particular way of viewing the world, which is
based off of genetics, personal experience, economic status,
political/religious preference, education, and a slew of other factors. But,
you can assess whether your perspective
is effectively contributing to achieving your goals.
We’ve
all been told that when one approach is repeatedly not working, it’s time to
try something else. The same goes for perspectives. Sometimes, problem solving
is as simple as looking at things in a different way. After countless attempts,
a goal may seem unachievable—and that is when it’s time to flip your outlook.
As
business owners, it’s been ingrained in our brains that planning, budgeting,
and expertise are key to success. However, a recent shift in perspective led me
to the conclusion that they actually aren’t that important as we were once
taught to believe. Let me give you an example:
Last
month, I received and invested in four new issues and profited from all four.
One even doubled in a day. They were from different industries, but all related
to technology in some way. The most interesting aspect was that they all lost
significant money, but the losses are mostly growing. This made me take note of
the fact that many new businesses seem more focused on sales growth and
potential rather than targeting profitability. Amazon is a perfect example of
this, as it was viewed for many years as the poster child for growth and losses.
Now, companies like Uber and Wayfair are trying to emulate that model.
This
trend clearly illustrates how traditional methods of planning and forecasting
businesses are dramatically changing in nature and diversity. We’re used to the
notion that traditional small businesses need to show profitability in order to
pay bills and find investors. But, the reality for many new businesses (such as
apps, sharing sites, and innovative technologies) is the requirement to prove
their concept’s worth through larger scale, bigger investments, and exponential
growth/losses over several years. Additionally, forecasts of these larger
entities are generally meaningless and inaccurate because of the risk and
uncertainty.
With
all of that in mind, it’s easy to see how, when it comes to setting goals,
venture capitalist firms strive for potential 100 million-plus entities while
the small entrepreneur is often pleased with a million-dollar entity that makes
10% profit. Each person’s perspective is informed by their circumstances,
needs, and perceived capabilities. Some entrepreneurs are just out of college,
living at home, and may have a somewhat unrealistic view of life. Others are seasoned
venture capitalists or investors (think Shark Tank judge) looking for the next
billion-dollar deal. And then there are business owners in their 30’s or 40’s
with extensive expertise and experience who need to make a living quickly. With
very distinct backgrounds and needs, each of these individuals will come up
with a unique plan of action to achieve their goals and a strategy for
assessing risk, competition, market size and growth, resources, experience, and
expertise.
Circumstance
informs goal setting and perspective makes or breaks whether those goals are
achieved. Consider the following:
The Kaufmann Foundation, a group that promotes business growth, estimates there are about 400,000 new startups every year and that 90% of them will fail before their fifth year.
There are an estimated 131 startup companies that have achieved over $1 billion of valuation in the last few years.
Thus,
in roughly five years, the odds are about 1 in 15,000 that a company will reach
$1 billion in valuation, and 1 in 10 (mostly small companies) will survive five
years. There are, of course, significant variations in these outcomes. For
example, small companies often get bought or sold and many large companies
succeed, but have less than $1 billion valuations.
Also
noteworthy is the fact that most of the billion-dollar companies achieved
exponential growth, but also lost money over several years. For example, Uber,
though a leader in startups, lost over $5 billion in the last quarter.
Compounding the issue is that early investors were paid $4 billion in that
quarter which further complicates the situation. Similarly, nearly every new
large startup shows a dramatic increase in sales, but even more dramatic losses.
The
takeaway, perhaps, is that, with this knowledge, goal setting might benefit from
a shift in perspective. Rather than implementing a strategy that targets outcome,
an approach that focuses on immediate results may be more beneficial. The point
is: the times are changing and what once worked won’t work forever.
Things
to keep in mind:
Know your goals, resources, and risk. In particular, really understand your market analysis, competition, and how and why your company is different. Why should customers care? If you can’t answer this question, shift your perspective and look at your company through the eyes of a customer or a competitor.
For small business owners, it’s crucial to consider proper planning, adequate research, business excellence, and well-executed programs. Ensuring profit is critical to being in the 10% that succeed. It’s also important to recognize when any of these areas are failing. For instance, if you’re having problems with planning, consider a different outlook. You may be looking at the issue with blinders on. As previously stated, problems are often solved by simply stepping outside of your traditional way of thinking and assessing the situation from a different perspective.
If you require exponential growth to ultimately succeed, you still need to understand metrics. No matter the size of your business, know the risk and uncertainty, develop the resources, assess the ultimate market, and ensure there is at least a potentially profitable metric down the road. Is cash flow relevant and when?
A plan of action for an unrealistic goal will look impossible while a plan of action for an achievable goal may seem daunting, but doable. Dr. Bert Shlensky, president of www.startupconnection.net, offers experience and skills and a team devoted to developing and executing winning strategies for businesses of all kinds. This combination has been the key to client success. His book, “Passion and Reality for Small Business Success,” is available at www.startupconnection.net.
Imagine waking up and being excited about going to work.
What would it take for that to happen? Perhaps a boss who understood your
needs? Coworkers who were easy to collaborate with? Clear communication between
departments? A challenging, but manageable workload? Good pay, benefits, and
some fun office perks like free lunches? In short, most of us require a work
environment that supports our needs while encouraging productivity in order to
be happy and successful in our jobs. Employee satisfaction relies heavily on
company culture.
Establishing a successful culture is crucial for the overall
progress of any company and maintaining a positive atmosphere with clear
expectations is essential to facilitating employee performance. A great
strategy that lacks a supportive culture is sure to fail, while an environment
where people feel they are being given the recourses to excel will result in a
much higher success rate.
So, how do you create a successful culture?
Encourage
Communication
Surprise! When everyone is on the same page, things run more
smoothly! Set goals and develop strategies to achieve them. And then share those with your teams.
Inclusive environments foster a stronger sense of belonging, which can increase
performance.
Accept Failure
It’s inevitable. Acknowledging that fact from the beginning
enables everyone to get over their “fear” of it happening. If employees know
they will be supported when it happens, they’ll be more likely to take
(appropriate) risks, which can lead to innovation. When people are afraid, they
can’t perform to their full potential, as fear is one of the leading factors
that holds us back and prevents us from trying new things.
Look for the Positive
We’ve all felt what it’s like to work with/around negative
people—their energy sucks everyone else down to their level. We feed off of
those around us. Create an atmosphere where everyone lifts one another up. Finger
pointing and attempting to place blame is never productive. When a problem
arises, work to find a solution. When mistakes happen, look for the lesson to
be learned and grow. Everyone will be better for it. A culture that focuses on
learning from mistakes will always be more equipped to deal with them when they
arise.
Provide Assistance
Make sure employees have the resources they need to succeed.
That may mean providing additional training, one-on-one feedback, updated
equipment/software, or extending deadlines. Understand your employees’ needs
and let them know they can rely on you to back them up.
Ensure Employees Have
a Voice
This can be as simple as a suggestion box where employees can
anonymously provide feedback. The key here, however, is that all suggestions
must be thoroughly considered. Just allowing people voice their
thoughts/opinions/concerns isn’t enough. Their suggestions must be
appropriately addressed as well.
Treat People Equally
and Individually
This might sound contradictory, but it simply means that,
while everyone should be treated fairly and equally, their individual needs also
need to be taken into consideration. Some might need more supervision or verbal
encouragement while others thrive being left with complete autonomy on a
project.
Bring Back Basics
We all want to be respected, appreciated, and acknowledged.
Be kind and remember that a simple, “Thank you,” goes a long way. And don’t
forget to have some fun. Sure, it’s work, but we all like to have fun while
doing it. Have a company picnic, organize a holiday party, or join an
intramural sport with coworkers. The more you bond outside of work, the
stronger the team will be at work.
Obviously, each environment is unique and the type of
culture you cultivate will be specific to the needs of your individual
organization. While a majority of these examples are universal, it’s up to you
to decide what culture will work best for the success of your company.
Poll:
Which aspect of work
culture is most important to you?
(Please let us know
in the comments!)
Work/life balance
Benefits package (health care, PTO)
Flexible hours
Positive/likable coworkers
Feeling challenged
Dr. Bert Shlensky, president of Startup Connection ( www.startupconection.net ) is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business as well as the President & CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, his focus is on working with select startups and small businesses.
“Who’s in charge here?” A question frequently asked when things go wrong. We want answers when bad decisions lead us to less than ideal outcomes! We demand to know where blame should be placed for any negative situation we find ourselves in! And we tend to assume that all decisions are made at the top level—and, too often, they are. And that’s the problem. Because the best decisions usually include operational features. Learn to make better decisions.
It’s a common misconception that the smartest, most capable members of an organization are at the top, “running the show.” But, that’s naïve thinking because a majority of us have been that employee dealing with an incompetent boss, right? Successful businesses (and governments) have learned that infrastructure, support, and teamwork are integral to effective decision-making. This is why leaders have advisors and the reason many companies utilize think tanks to make better decisions. Sure, there’s often a need for a strong “all-star” to be the face of a business or team, but organizations are finally acknowledging that operations are the glue holding everything together and communication between all levels is imperative.
With that in mind, it’s easy to see why the current trend shows that operations
and analytics are critical components of marketing and planning. Additionally,
automation, technology, customer needs, and the sharing economy are becoming
vital components of the branding and marketing process. Some examples include:
Internet
sales. In the beginning, delivery and security were thought to be major obstacles.
Today, quality customer service, heightened cybersecurity, and speedy delivery have
become virtually standard. Additionally, the elimination of several processing stages
(like those used in brick and mortar stores) can dramatically reduce costs and
prices.
Innovative
marketing strategies. Creativity, differentiation, and advertising have always been the focus
of traditional marketing and branding approaches. However, factors like value,
service, quality, and culture are producing better results. The evidence is
clear if you compare how brands in department stores target their customers
versus the way Amazon and other leading online stores interact with users.
So how do you utilize operations to make better decisions?
“All-inclusive” business structures. Companies are learning to value expertise and experience over the obsolete hierarchy system. Phrases like, “We have always done it this way,” and, “Because I’m the boss,” simply need to be replaced with a commitment to searching alternative options to find the best solutions.
Integrate Functions. For example, an organization’s Customer Service department is frequently owned by the contact center (voice, chat, email), while a marketing team manages its social media. There’s a silo that needs to be broken down with this relationship in order to keep everyone on the same page and maintain communication between departments.
Critical Analysis. More attention needs to be placed on analytics,
review, and alternative approaches. In particular, risk, probability, and goals
need to be taken into consideration as a critical part of problem analysis and
decision-making. An easy and free analysis tool is the Internet. Simply search Amazon
or Google for a better understanding of your competition.
Welcome failure. We view it as a “bad word,” but it’s part of Success. And an important one. Vince Lombardi got it right when he said, “If you aren’t making mistakes you aren’t trying hard enough.” After all, how many times did Thomas Edison fail before he succeeded?
Curb exorbitance. We all know the expression, “If at first you don’t succeed, try, try again.” And as the previous bullet point states, failure helps us learn. BUT, I do like to make a note that there it is necessary to maintain a balance between the encouragement of innovation and the critical analysis of what is and is not working. Stupid questions may not exist, but bad ideas do. And you need to have the tools and judgment to recognize when you’ve spent too much time or effort on something that isn’t worthwhile. A good decision can be as simple as: stop making the same bad one.
While organizations and environments continue to become more complex and change at rapid speeds, it’s important to adjust your business plan to accommodate these transitions accordingly. Focusing more on Operations can improve the way your business functions, and allowing the decision making process to start at an operational level is an integral part of adapting a more efficient strategy. When decisions are inclusive, they’re more informed. And I think we can all agree that the more informed we are, the better equipped we are to make better decisions.
Dr. Bert Shlensky, president of Startup Connection (www.startupconection.net ) is a graduate of Sloan School of Management at M.I.T. He served as the president of WestPoint Pepperell’s apparel fabrics business as well as the President & CEO of Sure Fit Products. Having provided counseling to over 2,000 clients, his focus is on working with select startups and small businesses.
When you want to stand out, reach out to Bert for the tools that will build your “sticky” brand. My focus is on understanding and analyzing your dilemmas and challenges, so your company becomes profitable faster.
Call (914) 632-6977 or email me at bshlensky@startupconnection.net. Don’t leave without signing up for our useful free eBook!
Feeling stumped or overwhelmed? Contact Bert at (914) 632-6977 or Email to start the process. Thanks!
